Product lifecycle(PLC) is a new product progresses through a sequence of stages from introduction to growth, maturity, and decline. This sequence is known as the product life cycle and is associated with changes in the marketing situation, thus impacting the marketing strategy and the marketing mix.
Product lifecycle management is the succession of strategies by business management as a product goes through its life-cycle. The conditions in which a product is sold changes over time and must be managed as it moves through its succession of stages.
There are stages for product lifecycle, we will discuss in this article as follow.
Product Lifecycle Stages(PLC)
- Development is a phase that a company goes through during the preliminary or early stage of its corporate life. a development-stage company is characterized by its focus on early-stage business activities, such as research and development, market research or construction of manufacturing facilities. This stage is divided into three stages, the germinal stage, the embryonic stage, the fetal stage.
- Introduction During this stage, the product is unknown to the market and often requires a large business investment to produce the product. The first stage is the point at which the product is presented to the public for the first time.
- Growth in this stage, the products growth, sales, revenue, and profits are on the rise. This stage comes after the introduction stage of the PLC where the emphasis is on developing the product and the company incurs cost on it. for many manufacturers this is the key stage for establishing a product’s position in a market, increasing sales, and improving profit margins.
- Maturity shows that sales will eventually peak and then slow down. During this stage, sales growth has started to slow down, and the product has already reached widespread acceptance in the market, in relative terms. Ultimately, during this stage, sales will peak. The maturity stage occurs after the introduction and growth stages. it is the longest stage of the product lifecycle. In this stage, sales growth begins to decline; the company reaches the highest point in the demand cycle; and advertising strategies have a minimal impact on sales growth.
- Saturation this is where customers have other preferences that are cheaper and better. When saturation occurs, a product starts to decline. It is the stage where a company designs a particular product to meet the specific demands of the market.
- Decline it is a fall or descent and, in the product lifecycle, the decline stage represents similar behavior for products. The decline stage in the product life cycle is when a product dissolves as a result of decreased or negative growth.